Recommendations for Cash Connection
Cash Connection – Case Study Analysis
We have come to the conclusion, after analyzing all information of the financial services industry, that the below recommendations will assure that Cash Connection will maintain is dominant market shares and differentiate itself from other competitors in the Payday Loan Industry.
1) Increase Cash Connection locations across the United States for targeting middle income, average education, young families, and non-home owners 2) Implement a loyalty programs to reduce fee for new or loyal customers. 3) Apply research and marketing to develop service that sparks an entrepreneurial mindset and self-empowerment. 4) Offer Line of Credit / Credit Cards in the amounts of Typical Loans at reasonable annual percentage rate.
Although the financial stability (Appendix 4) of Cash Connection is declining due to government regulations and the declining economy (Appendix 5) Cash Connection should maintain and continue a steady growth rate in opening new locations where it complies with Cash Connection’s business model requirements. (Appendix 6) Growth and expansion are a key factor in establishing and retaining loyal customers. With a low startup cost and a high return on investment entering new areas will increase market shares. (Appendix1, 5)
To increase involvement from new and loyal customers, Cash Connection should seek different solutions with regards to loyalty programs. According to appendix (6) Banks do not satisfy customer’s requirements for financial or other reasons. Cash Connection can market these unbanked consumers through loyalty programs. In consideration of influences that will affect the future growth (Appendix 4) marketing research has shown that consumers have other financial options available, however, payday advance loans are a better financial decision that are quick and convenient. (Appendix 8)
By offering financial counseling, Cash Connection should (Appendix 7) promote the responsible use of credit and strive to educate the consumer on financial choices that are available to them; thus, increasing an entrepreneurial mindset and self-empowerment to manage their finances correctly. By following the Council for Fair Lending Cash Connection will promote social responsibility and ethical business practices.
By offering a credit card in the amount of a typical loan, Cash Connection will make more money and differentiate itself from other payday loan businesses. (See Appendix 3) In comparison to other credit products with which respondents had recent experience, customer overall satisfaction with payday advance (75%) was second only to check overdraft protection (83%). Payday advance also ranked higher than overall satisfactions with obtaining a home equity line of credit, a major credit card, a loan with a bank or credit union, and a car title loan. (Appendix 8) By entering this market Cash Connection will gain more market shares.
Table of Contents
What are the industry dominant economic features?
What kinds of competitive forces are industry members facing?
How strong are Competitive Forces?
What forces are driving industry changes and what impact will these changes have on competitive intensity and industry profitability?
What market position do industry rivals occupy – who is strongly positioned and who is not?
What strategic moves are rivals likely to make next?
What are the key factors for future Competitive success?
Does the outlook for the industry offer the Cash Connection a good opportunity to earn attractive profits?
What forces are driving industry changes and what impacts will they have?
How Well the Company’s Present Strategy is working?
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